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ENGINEERING PROCESS GUIDE

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Supplier Management and Procurement Planning

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    Overview

    The procurement department has the sole authority to commit the laboratory contractually. Please refer to the Procurement Guidelines - Know Before You Buy as well as to the roles and responsibility tab of this page. Please refer to forms and examples for checklists, supplier evaluation forms, and examples for procurement packages.

    Supplier management process guides the project team through initiating of a purchase to its receipt and acceptance. LBNL takes a graded approach to the level of formality applied to supplier management based on the project assessment (low, medium, high) and well as the grade assessment of the procurement (low, medium, high).

    Engineers, Designers, Scientists and Manufacturing Engineers are often functioning as the Technical Representative for the purchase. Please make sure to take the training to understand this role and your responsibilities. Please refer also to the 'roles and responsibilities' tab on this page.

    The purchases are classified in three types determining the the process flow.

    • Make (Design/Build, Build to Specifications)
    • Services
    • Buy (standard parts)

    Supplier Management Grading

    In addition to the cost thresholds determined by procurement rules (Know Before You Buy) a risk based graded approach is implemented by the project lead that allows projects to customize the level of procurement oversight and documentation depending on a few key properties of each individual procurement.

    With individual procurement grades, the project can focus efforts on the highest risk procurements, while procuring low risk components in a fast and efficient manner. The LBNL manufacturing and procurement group provides technical service to projects for critical procurements (high level of care items).

    For high formality projects the supplier management and acquisition strategy is detailed in the project specific QA plan and the project execution plan.

    Supplier Management

    Low Formality Medium Formality High Formality (externally driven requirements apply)
    Grade assessment for Supplier Management Optional use of  supplier management grade assessment; execute per the risk assessment of the purchase for the project. Apply Supplier Management  and QA grade assessment to fabricated and purchased parts; execute per the risk assessment of the purchase for the project. Apply Supplier Management grade assessment and supplier management as outlined in the project specific QA plan
    Quality Assurance encouraged QA role integration is encouraged. QA role must be integrated in process
    Materials Management informal Formality of materials management is determined by grade assessment Formality of materials management is determined by grade assessment or as determined by the project execution plan



    Purchasing Forms

    A list of all forms used by Procurement and Property Management can be found here. The form can be downloaded by clicking on the name of that form.

    Supplier Qualification

    Evaluation of the capability of potential supplier is an important part of the supplier selection process.

    Supplier Questionnaire and Qualification Form 

    Procurement Package

    Complex procurements are often a significant contributor to a project’s risk with regard to schedule, budget and final deliverables meeting specification. A checklist of items to be considered when assembling specification can be found here.

    A procurement package typically includes:

    Description

    Procurement Scope

    Acceptance Criteria List

    Material Specification if applicable

    Work Instruction (includes information of Shipping and Handling)

    A Complete Set of Assembly Drawings

    A Complete Set of Detail Drawings

    BOM


    Example for a procurement Package for a moderate graded fabrication step

     APEX Buncher Procurement Package

    Supplier Management Grading

    In addition to the cost thresholds determined by procurement rules (Know Before You Buy) a risk based graded approach is implemented by the project lead that allows projects to customize the level of procurement oversight and documentation depending on a few key properties of each individual procurement.

    With individual procurement grades, the project can focus efforts on the highest risk procurements, while procuring low risk components in a fast and efficient manner. The LBNL manufacturing and procurement group provides technical service to projects for critical procurements (high level of care items).

    For high formality projects the supplier management and acquisition strategy is detailed in the project specific QA plan and the project execution plan.


    Roles and Responsibilities

    Supplier management establishes the structure for managing a sub-contractor from the placement of an order through the receipt and acceptance of the purchased item. 

    Procurement

    • Solely has the authority to make procurement commitments on behalf of the laboratory
    • Ensures that LBNL procurements adhere to LBNL, UC, DOE, state, and federal mandates, rules, and regulations
    • Responsible for administering all contractual aspects of procurements
    • May assist in contract negotiations, identifying sources, and compliance

    Requester

    • The individual who initiates the procurement process using approved procurement channels

    Technical Representative

    • Designated Individual identified in a sub-contract to monitor the work
    • Technical contact to the supplier for interpretation and clarification of technical requirements
    • Maintains communication with the supplier but is NOT authorized to make changes to the ordered item(s) or modify the sub-contractor
    • Facilitates communication with project team, vendor and procurement
    • Actively communicates with procurement to advise of technical non-conformance, schedule delays, and cost overruns
    • Maintains, reviews, and approves, non-subcontract documentation produced or used in subcontract performance
    • Provides technical support and works with Procurement in resolution of subcontract termination actions and subcontractor claims and disputes
    • Verifies that work is complete, reports are received, proper certifications have been obtained and no issues, claims or invoices are outstanding

    Manufacturing Engineer

    • Member of Engineering Change Control Board
    • Assists the project in developing the required specification documentation, ACL (Acceptance Criteria Listing)

    • Ensures vendor follows LBNL QA change control processes

    • May also act as a contract Technical Representative

    DOCUMENT INFORMATION

    Title: Supplier Management and Procurement Planning
    Document number
    Revision number 1
    Publication date: 7/9/15
    Effective date: 7/9/15
    Next review date: 10/1/2016
    Last Edited By: khanzel@lbl.gov
    EPG Section (home) Quality Assurance
    EPG Section (cross reference)
    Functional Division Engineering

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